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Two Sample Test for Proportion: Foreclosure Rates on Mortgages, Lecture notes of Statistics

Institute Of Business Administration Sukkur (IBAS)Statistics

Statistical inference course of statistics is very essential in research purpose

Typology: Lecture notes

2016/2017

Uploaded on 07/19/2017

rajab-meer
rajab-meer 🇵🇰

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TEST YOUR KNOWLEDGE: Two Sample Test for Proportion
1. A researcher is interested in comparing the foreclosure rates on mortgages issued to men
and women. The data is below:
Men: Out of 500 mortgages issued to men, 65 resulted in a foreclosure.
Women: Out of 200 mortgages issued to women, 18 resulted in a foreclosure.
Test whether the difference between the proportions of the two groups is significant at an alpha
(significance level) of .05.
(a) What are the null and alternate hypotheses?
(b) Draw the picture of the distribution of the test statistic (under H0). Include critical value(s)
and region(s) of rejection.
(c) What is the calculated (computed) value of the test statistic?
(d) What is your conclusion?

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TEST YOUR KNOWLEDGE: Two Sample Test for Proportion

  1. A researcher is interested in comparing the foreclosure rates on mortgages issued to men and women. The data is below:

Men: Out of 500 mortgages issued to men, 65 resulted in a foreclosure.

Women: Out of 200 mortgages issued to women, 18 resulted in a foreclosure.

Test whether the difference between the proportions of the two groups is significant at an alpha (significance level) of .05.

(a) What are the null and alternate hypotheses? (b) Draw the picture of the distribution of the test statistic (under H 0 ). Include critical value(s) and region(s) of rejection. (c) What is the calculated (computed) value of the test statistic? (d) What is your conclusion?